E M R A DEMAND SIDE MANAGEMENT DEMAND SIDE MANAGEMENT IN THE ELECTRICITY MARKET IN THE ELECTRICITY MARKET (From the regulatory perspective) T.C. T.C. ENERJİ PİYASASI DÜZENLEME KURUMU ENERJİ PİYASASI DÜZENLEME KURUMU (ENERGY MARKET REGULATORY AUTHORITY) (ENERGY MARKET REGULATORY AUTHORITY) EİE, NOVEMBER 2007 EİE, NOVEMBER 2007 Bilal ÖĞÜNLÜ Bilal ÖĞÜNLÜ M.Sc. E.E. Eng. M.Sc. E.E. Eng. Energy Expert Energy Expert
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E M R A
DEMAND SIDE MANAGEMENTDEMAND SIDE MANAGEMENT IN THE ELECTRICITY MARKETIN THE ELECTRICITY MARKET (From the regulatory perspective)
Bilal ÖĞÜNLÜBilal ÖĞÜNLÜM.Sc. E.E. Eng.M.Sc. E.E. Eng.Energy Expert Energy Expert
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E M R A
۩ DEMAND SIDE MANAGEMENT (DSM)? ۩ DSM ON DAILY LOAD CURVES۩ IMPORTANCE OF DSM۩ BENEFITS FOR THE MARKET۩ APPLICATIONS OF DSM۩ DSM IN TURKEY۩ DSM FROM SUPPLY SIDE۩ DSM FROM NETWORK۩ DISTRIBUTION NETWORK VOLTAGE۩ A TARIFF APPLICATION IN TURKEY۩ NATIONAL LOAD STATISTICS۩ BASIC PRINCIPALS OF DSM۩ QUESTIONS
CONTENTSCONTENTS
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E M R A DEMAND SIDE MANAGEMENT (DSM)?DEMAND SIDE MANAGEMENT (DSM)?
۩ To control and regulate the consumption pattern…۩ To use system resources optimally…
۩ Designed under the regulation systematic…
۩ Applied by system operators…
۩ Includes all measures managing the timing and amount of energy demand.
E M R A DSM ON DAILY LOAD CURVESDSM ON DAILY LOAD CURVES
Peak Clipping
Valley Filling
Load Shifting
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۩ Progress in technology and economy in the world; ۩ Rapid growth in demand for electrical energy +
۩ Difficulty in meeting the increasing demand by the supply side.
۩ An easy way to solve; ۩ More generation investment… ۩ The more redundant generation units, the more cost to the
consumers in the market...
۩ In this case, the best solution; ۩ By DSM, to use existing generation capacity, more efficiently... ☺
[Paracha, Z.J.; 1996]
IMPORTANCE OF DSMIMPORTANCE OF DSM
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۩ Some benefits of DSM for the electricity market: [McKinsey & Company; 2001; s.2]
۩ System reliability,۩ Cost avoidance,۩ System efficiency,۩ Risk management,۩ Environmental issues,۩ Customer service and ۩ Market power.
BENEFITS BENEFITS FORFOR
THE MARKETTHE MARKET
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۩ Time of Use Tariffs:۩ To associate consumption time with the cost of energy…
۩ Interruptable Load Tariffs:۩ Applied to the customer shedding the load voluntearly …۩ The encouragements for the sake of shedding.
۩ Loss Reduction in the System:۩ Losses are removed by some preventive measures… ۩ Savings,
۩Not only by reducing the losses…۩But also, by some reductions in the investments… ۩And by increasing the system utility lifetime…
APPLICATIONS OF DSMAPPLICATIONS OF DSM
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۩ DSM is to be a part of the energy politics…
۩ To be programmed in the energy investment…
۩ Increasing demand is met by the new generation investments…
۩ Neglecting the efficiency in consumption and the value obtained by consumption managements…
۩ To be able to meet the needs and the imperfections, in the market the policy should be carried on by;۩ Ministry,۩ Regulator,۩ Institutes and universities…
۩ Cooperation with the foreign foundations...
DSM IN TURKEYDSM IN TURKEY
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E M R A DSM FROM SUPPLY SIDEDSM FROM SUPPLY SIDE
۩ In Turkey, in 2007; ۩ A trouble with the matching the demand with the
production capacity…
۩ Urgent solution, National Demand Side Management…
۩ To gain time for the new big investment…
۩ Otherwise; unfortunately, ۩ The shortage of electrical energy supply…۩ Negative effect on restructuring the electricity market…
۩ For Turkey, DSM is getting more importancy in today’s electricity market…
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۩ The Necessity of DSM from the network point of view; ۩ 220 V voltage level…۩ From February, 2005…۩ Until January 2006…۩ 1 year duration…
۩ Result;۩ Voltage decrease up to 20 %...۩ In the short run, the need for the renewal of all
distribution network within the country! ۩ Or, to overcome shortages by a central program on
DSM.☺
DSM FROM NETWORKDSM FROM NETWORK
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DISTRIBUTION NETWORK VOLTAGE DISTRIBUTION NETWORK VOLTAGE (KEÇİÖREN(KEÇİÖREN––GAZİNO, 09/01/2006) GAZİNO, 09/01/2006)
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TARİFE KATEGORİLERİ AKTİF PUANT TARİFESİ REAKTİF ABONE GRUPLARI ENERJİ (TL/kWh) GÜÇ GÜÇ AŞIMI ENERJİ
E M R A BASIC BASIC PRINCIPALS OF DSMPRINCIPALS OF DSM
۩ Awareness and participation of the consumers,
۩ Be fair within the participants,۩ Strong and stable market,۩ Negotiable metering contract,۩ Right timing in the contract,۩ Evenly distributed value added.